I've met dozens of “Fractional” Leaders lately, and I’m friends with many of them… but the sad truth is, it’s only working out for a very small handful of people.
Many have bought into the dream that the day they retire, hordes of clients will come knocking down their door for their services and they’d be able to cherry pick the best deals.
But don’t buy that message too quickly – the ‘Success Stories’ you’ve been hearing on LinkedIn are few and far between and if you think ‘Fractional Work’ is such an easy pivot, you’re in for a world of disappointment.
Take a 52-year-old former Regional Marketing Director I spoke with recently. Eight months after going fractional, he has exactly one client, a former colleague paying him for two days a month, and a pipeline that’s as thin as the coffee his budget service-office dispenses into his cheap plastic mug every day.
First, What Does Fractional Work Actually Mean?
A fractional executive provides senior leadership for part of their time, say a CFO offers two of his days a week for a business that needs the expertise but can't justify a full-time hire.
Done properly, you're embedded in the business with real responsibilities and accountability for results, rather than dispensing advice and sending an invoice.
It's a legitimate arrangement, but the term "Fractional" has also become a rather fancy word for 'Part-time Work', and the trouble starts when the impressive title creates unrealistic expectations about income, demand and lifestyle.
Before You Buy Into The Dream, Let's Clear Up 3 Myths.
Myth1️⃣: It’s Easy Pickings Because Demand Is Huge
Yes, demand is growing… but so is the pool of senior talent chasing it.
A new LinkedIn headline announcing your new "Fractional" Status won't bring you clients.
The market is saturated with like-minded idealists who have been T̵o̵l̵d̵, I mean, Sold the dream that it's an easy gig.
Bear in mind you’re competing against consulting firms, AI as well as a truckload of other fractionating Semi-retirees, so business isn’t going to be as booming as you’d originally thought.
Do your homework carefully before jumping onto this bandwagon.
Myth2️⃣: It’s A Great Lifestyle Doing The Work You Enjoy
As many consultants will tell you, consulting is 80% selling and 20% doing.
Unless you already have a Top-of-mind Reputation or already enjoy a thriving Practice, you have to be prepared to spend most of your time doing business development, networking and even cold-calling for new business.
If this isn’t what you’re particularly fond of, it’s going to be a painful journey ahead.
From personal experience running my own consulting business for the past 25 years, when you’re delivering on a project, you often have little time to conduct any Business Development, so when your project is completed, it’s back to hitting the streets once again – a rinse and repeat cycle that can kill your joy if you’re not a natural-born Salesperson.
As a result, your salary is going to be highly irregular, or ‘lumpy’ as we call it in the business.
Think about whether you’re willing to spend time on Sales – Being excellent at your profession and being able to sell it are two different capabilities, and you'll need both.
Myth3️⃣: I Can Always Pivot Back To Corporate Jobs After 'Fractionating'
If you might want another full-time role someday, tread carefully.
"Fractional CEO | Board Advisor | Consultant" suggests to a headhunter you've gone independent for good, and makes them wonder what happens to their clients if you join.
A Retained Search Headhunter I spoke to told me that he refrained from approaching Senior Candidates with the term "Fractional CXO" in his job title because he would never be sure if that person would give 100% of themselves to the Employer, as they might still be providing 'Fractional work' to their own clients.
Ironically, the more 'successful' that the candidate seems about their 'Fractional Work', giving speeches, posting about their workshops/ engagements and writing books, the less likely he would be approached by the Headhunters as they are deemed 'too successful' to ever want to go back to Corporate Life.
So, don't expect to 'eat your cake and have it' in these situations – and be careful with your Professional Branding and Messaging.
So How Do You Do It Properly?
Treat it like a Strategic Game rather than a title change.
1️⃣ Decide on a Niche. You cannot be too 'Generic' as these roles are too easy to hire in the open market.
You need to tap deep into your experience and be the "M&A Valuation, Due-Diligence and Governance" Expert rather than 'I'm the Finance Manager… can I do some Excel Spreadsheets for you, Sir?"
2️⃣ Build your Reputation NOW rather than later.
Whilst you're still in your current job, start collecting Experience Points around that NICHE you identified in #1️⃣ and assemble a credible and robust portfolio of success stories – the wider and higher profile it becomes, the more compelling a 'Business Case' you become.
3️⃣Incubate the Idea NOW!
Test the proposition while still employed, where your terms allow and without conflicts. One small paid assignment teaches you more about demand and pricing than months of polishing your personal brand statement. Do it pro-bono if you have to, just to test the market, and see whether you like the idea of doing consulting work.
The Bottom Line : Fractional Work can be a great retirement format, and for some it grows into a substantial business… but do your homework first before embarking on this journey, basing your career decision entirely on hearsay…
